Financial Liberalization and Money Demand in Asean Countries : Implications for Monetary Policy

Author/Editor:

Robert Dekle ; Mahmood Pradhan

Publication Date:

March 1, 1997

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines the impact of financial market development and liberalization on money demand behavior in Indonesia, Malaysia, Singapore, and Thailand since the early 1980s. The empirical results indicate continuing instability in the interaction of money growth, economic activity, and inflation. Rapid growth and ongoing changes in financial markets suggest that policy needs to be guided by a wider set of monetary and real sector indicators of inflationary pressures. The feasibility of alternative policy frameworks--including nominal exchange rate targets, and inflation targets--is discussed in the context of the substantial and sustained increase in foreign capital inflows.

Series:

Working Paper No. 97/36

Subject:

English

Publication Date:

March 1, 1997

ISBN/ISSN:

9781451845419/1018-5941

Stock No:

WPIEA0361997

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

38

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